Texas rare earths mine developers to build U.S. refinery

Texas Mineral Resources

16/12/2019 17:17

By Ernest Scheyder
    Dec 16 (Reuters) - Developers of a Texas rare earths mine
said on Monday they will build a pilot plant to refine the
strategic minerals, the latest domestic processing project
announced at a time when more Americans are voicing concern
about China's control over the sector.
    China is the largest global processor of rare earths, a
group of 17 minerals used to make a range of electronics and
military equipment.
    Texas Mineral Resources Corp  TMRC.PK  and privately held
USA Rare Earth said they will spend $10 million to $12 million
to build the pilot plant in Colorado, near industry consultants
and academics. 
    The partners hope to be producing small amounts of processed
rare earths by the middle of 2020 - roughly 100 kilograms (220
pounds) annually. This would help them finalize supply deals
with potential customers and secure financing for a full-scale
plant near their Round Top mine in rural west Texas.
    The partners plan to move the pilot plant to Texas by 2021
and have full-scale production by 2023.
    California's Mountain Pass mine, which is controlled by a
hedge fund, is building its own rare earth processing equipment
and hopes to have it online by next year. urn:newsml:reuters.com:*:nL2N23A0T7
    Australia's Lynas Corp  LYC.AX  earlier this year signed a
memorandum of understanding to build a U.S. rare earth
processing facility with privately-held Blue Line
Corp. urn:newsml:reuters.com:*:nL2N25O003        
    Separately, the U.S. military has launched plans to fund
construction of rare earths processing facilities, according to
government documents seen by Reuters, part of an urgent push by
Washington to secure domestic supply of the minerals. The
military has already extended the deadline to apply for funding
three times.  urn:newsml:reuters.com:*:nL1N28F2AS urn:newsml:reuters.com:*:nL1N28N1RV
    Texas Mineral Resources and USA Rare Earth did apply for
funding from the U.S. military, though they said such funding is
not needed to build out their pilot plant.
    "We don't want to sit and wait," said Pini Althaus, chief
executive of USA Rare Earth, an Australian investment group
previously known as Morzev Pty Ltd before changing its name last
year. "There's a sense of urgency around the need for a (rare
earths) processing facility that's not in China."    
    The facility will process so-called light rare earths as
well as heavy rare earths, a less-common type of the specialized
minerals that are highly sought after for use in weaponry.

 (Reporting by Ernest Scheyder; Editing by David Gregorio)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))